A human resources function is essential for any sizable business. It handles hiring, onboarding, benefits, and employee relations. 

But the title “HR” is fading.  70% of people we surveyed now call HR by another name.  

All jokes aside,  “People Operations” or “Employee Experience” and People & Culture are popular. 

This shift shows that HR isn’t just about managing employees and benefits. 

Now businesses want to build a wider demographic of employees, with various backgrounds, skills and experiences.

Ultimately, companies can leverage these diversities for the betterment of the company and for the benefit of customers.

 

Why the Change?

Several factors drive this shift of rebranding HR.

 

A focus on employee well-being

The pandemic brought mental health and well-being to the forefront. Businesses based in northern European countries are prioritizing employee well-being as a strategic driver of engagement and productivity.

 

The rise of the experience economy

Employees are looking for more than just a paycheck. They are purpose driven and seek a workplace that is aligned with their values and provides opportunities for growth and development.

 

Attracting top talent

The need to attract and retain top talent: In today’s competitive job market, companies need to do everything they can to attract and retain top talent. A strong employer brand and a positive workplace culture are essential.

 

Strengthening DEI (social sustainability)

Demographic gaps, especially in gender and ethnicity (by way of nationality) became impossible to ignore. European companies, facing compliance risks, tasked HR with urgently increasing diversity & inclusion.

 

Decoding New HR Titles: An Inclusive Workplace Perspective

These evolving HR titles demonstrate a shift in focus from traditional personnel management to a more holistic approach that recognizes the unique value that employees bring to the organization.

As a DEI advisor, I work with international companies and observe their patterns:

We asked our network how their HR department identifies itself.

 

Human Resources

The traditional Human Resources departments were set up to manage the administrative aspects of the employee lifecycle, including hiring, payroll, benefits, and legal compliance.

From our polls, 31% of companies still use the title Human Resources.
These were typically large industrial companies and small life sciences businesses.

DEI focus in Human Resources departments was to emphasize legal compliance and basic DEI policies.
Within hierarchical and siloed organizations, DEI teams spend a lot of time maintaining dashboards on compliance factors and implementing initiatives to meet compliance needs. 

Take for example the company which offers enterprise diversity training but doesn’t address underlying power dynamics or systemic biases in hiring and promotion processes.
They facilitate these programs to “tick the box”,  yet staff still complain about a lack of inclusion. 

 

People Operations

From our polls, 10% have a People Operations department.
These were tech and pharmaceutical companies with over 10,000 employees.

The DEI focus in People Operations is based on structured metrics and governance. DEI roles within the companies use their efforts to build data to track progress and find areas for improvement. But an over-reliance on metrics on a few parameters (gender for example) will overshadow the other aspects of diversity that are not being measured.  This is an iterative approach to addressing social sustainability (DEI).

A common situation is a company proclaiming an increased percentage of female leaders, but does not acknowledge the misalignment of ethnic women or non-cis gender women.

What diverse talents hear from companies,

“Gender is our main diversity topic – we’ll work on (enter your diversity group) once we have reached our current goals”

 

 

Employee Experience

Employee Experience departments prioritize the purpose driven and people-first mindsets.
A holistic employee journey, from pre-hire to exit, is key.

6% said they have an Employee Experience department.
These were companies from tech and public sectors which have dispersed / remote staff.

From a social sustainability (DEI) perspective, Employee Experience departments aim to create positive and inclusive experiences where employees feel supported.
What is often overlooked is the opportunity to strengthen business credibility and results by leveraging its diversity with external stakeholders – clients, investors, and communications

The risk is a fragmented DEI program with “fun” perks, but without measurable, sustainable outcomes.

What DEI results can you harness directly from your company’s quarterly team workcations?
 

 

 

People & Culture

People & Culture departments cultivate a strong company culture and values, focusing on employee engagement, diversity, and inclusion.

It is the most frequently selected type of HR department with 51% of the votes.
Over half of those respondents represent tech,  industrial, life sciences, and professional services.

Here, the DEI ambition is to align Diversity Equity and Inclusion with company values.

How does your company lead DEI when it’s undergoing a culture transformation or  redefining its values?
We see this happen a lot with tech based tech companies when they undergo a merger and acquisition.
During the integration process, the dominant company culture may overshadow the DEI initiatives of the acquired company, leading to a loss of diverse perspectives and talent.

In our experience new companies define principles of DEI as part of their values. Thus they are willing to integrate DEI throughout the business. Not just within the P&C roles.
Heritage and other longstanding companies have firmly engrained cultures that are often less connected to principles of DEI. Instead of integrating D&I into the business, it is accepted as an “add-on” to the current business.   
My take?

DEI is used as a small bandaid expected to cover an absence of a diverse/inclusive culture.

 

 

 

 

 

What does this mean for DEI in your HR function?

Strategic DEI (social sustainability) needs a multifaceted approach. It must address individual and systemic barriers.

By understanding each business structure’s focus and challenges, companies can create targeted solutions.

Inclusive Matters runs a DIEM (Diversity & Inclusion Enhancement Model) session with leaders to help leadership teams and HR functions set up an effective and sustainable DEI program and roadmap.

Interested to hear more?

 

Let’s discuss a DIEM session for your company now

Learn more about DIEM session

 

Polls conducted via LinkedIn and direct email.